All articles tagged with #us banking
The US passed the GENIUS Act, regulating stablecoins by requiring full backing with cash or Treasury bonds, audits, and AML compliance, while banning interest payments, which has sparked a high-stakes clash with the banking industry.
JPMorgan Chase & Co. has set a new record by making $49.6 billion in annual net income in 2023, surpassing its own previous record of $48.3 billion in 2021. This marks the highest annual profit ever achieved by a US bank, solidifying JPMorgan's position as a leader in the banking industry.
Mizuho Financial Group is set to acquire US M&A advisory firm Greenhill & Co for $550m, including debt, as the Japanese lender seeks a larger share of the world's largest investment-banking fee pool. The deal will help Mizuho expand its foothold in the US banking sector, particularly in M&A advisory and equity underwriting. Greenhill will sit within Mizuho's banking division, with its CEO, Scott Bok, becoming chairman of the M&A and restructuring advisory business.
Central banks' demand for gold hit a record high in Q1 2022, with 228 tons added to global reserves, the highest rate of purchases seen in a first quarter since the data series began in 2000. The World Gold Council's quarterly Gold Demand Trends report showed that demand (excluding over-the-counter) was down 13% in the first quarter from the same period last year, though base effects were in play as demand spiked that quarter as investors fled risky assets following Russia's invasion of Ukraine. The report also showed that investments in gold surged in March after the collapse of Silicon Valley Bank, the first of what has become a series of failures in the U.S. banking system among regional institutions exposed by higher interest rates.
US Treasury Secretary Janet Yellen has said she has not considered or discussed "blanket insurance" for US banking deposits without approval by Congress as a way to stem turmoil caused by two major bank failures this month. Some banking groups have urged the Biden administration and the Federal Deposit Insurance Corp (FDIC) to temporarily guarantee all US bank deposits, a move they say will help quell a crisis of confidence after the failure of Silicon Valley Bank and Signature Bank.
The recent banking cutoff for crypto firms in the US presents an opportunity for Europe to gain relevance in the industry. With more regulatory clarity and easier fiat payment rails, Europe could attract crypto firms that are struggling to find alternatives to US banks like Silvergate and Signature Bank. The euro may also benefit from the cutoff, as early indicators show a spike in BTC-EUR pair volumes. The longer US banks remain closed to crypto business, the more likely it is that firms will choose Europe instead.
US consumers have deposited billions of dollars into large banks such as JPMorgan Chase, Bank of America, and Citigroup after the collapse of Silicon Valley Bank, causing concerns over the financial health of smaller regional lenders. Moody's has changed its outlook on the US banking system to negative from stable due to the rapid deterioration in the operating environment following deposit runs at Silicon Valley Bank, Silvergate Bank, and Signature Bank. Shares of US regional banks have slumped on fears of possible bank contagion following the collapse of Silicon Valley Bank and Signature Bank.